2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 30,000 Q2 40,000 Q3 50,000 Q4 60,000 Production in Units Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds B. 192,000 pounds C. 208,000 pounds D. 216,000 pounds
2. Al Nebras Company has budgeted production for next year as follows: 1st Year Q1 30,000 Q2 40,000 Q3 50,000 Q4 60,000 Production in Units Four pounds of material X are required for each unit produced. The company has a policy of maintaining a stock of material X on hand at the end of each quarter equal to 20% of the next quarter's production needs for material X. A total of 8,000 pounds of material X are on hand to start the year. Budgeted purchases of material A for the third quarter would be: A. 52,000 pounds B. 192,000 pounds C. 208,000 pounds D. 216,000 pounds
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solve this question with steps please. The subject is Managerial Accounting .
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2. Al Nebras Company has budgeted production for next year as follows:
1st Year
Q1
30,000
Q2
40,000
Q3
50,000
Q4
60,000
Production in Units
Four pounds of material X are required for each unit produced. The company has a policy
of maintaining a stock of material X on hand at the end of each quarter equal to 20% of
the next quarter's production needs for material X. A total of 8,000 pounds of material X
are on hand to start the year. Budgeted purchases of material A for the third quarter
would be:
A. 52,000 pounds
В. 192,000 рounds
C. 208,000 pounds
D. 216,000 pounds
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